7.4 Task Force on Climate­Related Financial Disclosures (TCFD) 7.4 Task Force on Climate­Related Financial Disclosure (TCFD) The G20 Financial Stability Board’s Task Force on Climate- The Managing Board addresses sustainability-related risks Related Financial Disclosure provides a uniform framework - and opportunities of strategic and company-wide impor that companies can voluntarily use to report their climate- tance and adopts appropriate measures. The Managing related risks and opportunities and disclose the correspond- Board also approves any changes to the DEGREE sustainability ing information to investors, lenders, insurers, and other framework. stakeholders. This Annex provides an overview of Siemens’ activities based on these recommendations and offers refer- The Siemens Sustainability Board (SSB) monitors and ences to other sources of relevant information. resolves Siemens’ sustainability topics, including tracking the progress of our DEGREE ambition, providing input and Our governance in the area of climate action guidance on sustainability reporting, and acting as a catalyst Governance at the Managing Board level for regional sustainability initiatives with the potential to At Siemens, sustainability is rooted in all that we do, includ- scale across Siemens. The SSB is composed of representa- ing our business purpose and strategy, corporate culture, tives from Siemens’ businesses, countries, and Service and processes, and guidelines. The management of sustainability Governance units. The SSB meets four times per year or matters is embedded across our Siemens businesses, Service more frequently as needed. The SSB provides updates and and Governance units, and countries. Sustainability has also recommendations to the Managing Board. been an integral component of management compensation since fiscal 2020. Put simply, we strive to make sustainability Topics associated with climate change appeared regularly on everyone’s responsibility at Siemens. the agenda of EC SUS and SSB meetings in fiscal 2023 and included, for example, our Net Zero Operations Program As the top management body, the Managing Board is implementation or product-related decarbonization efforts. responsible for serving the company’s best interests and for achieving sustainable growth in company value. The Managing The Sustainability Executive Committee (EC SUS) acts as Board members are responsible for the entire management guidance body for Siemens sustainability business – the of the company and decide on key issues of business policy Siemens portfolio that enables positive sustainability impact and corporate strategy. by addressing and financing (i) decarbonization and energy efficiency, (ii) resource efficiency and circularity as well as The Supervisory Board oversees and advises the Managing (iii) people centricity and social impact – with a focus on Board in its management of the company’s business. The portfolio market segments and go-to-market topics, and it Supervisory Board meets regularly to discuss business devel- meets on an ad hoc basis to discuss relevant subjects. opment, planning, strategy, and the implementation of that Chaired by Siemens’ CEO, the EC SUS includes Siemens’ CSO, strategy. the CEOs of key businesses, Chief Strategy Officer, General Counsel, and Global Head of SUS. In 2023, we significantly strengthened our sustainability organization throughout the company by introducing the The Chief Sustainability Officer (CSO) oversees Siemens’ Sustainability Executive Committee (EC SUS) and Heads of sustainability topics. The CSO is a member of the Siemens Sustainability in key businesses and business units, and we Managing Board, chairs the Siemens Sustainability Board increased the responsibility of the Global Head of Sustain- (SSB), and is a member of the Sustainability Executive Com- ability (Global Head of SUS) and the Siemens Sustainability mittee (EC SUS). The CSO is also responsible for the Siemens department. Sustainability department. SIEMENS SUSTAINABILITY REPORT 2023 136